LGP acquires world-class, fully-operational GACP cultivation and...

LGP acquires world-class, fully-operational GACP cultivation and GMP licensed medicinal cannabis asset in Denmark (EU) with capacity to produce in excess of 20 tonnes of biomass per annum including 12 tonnes per annum of dried cannabis flowerLGP acquired Denmark Facility for C$20 million, with 50% paid at Completion and 50% payable in 12 months’ timeAcquisition a clear strategic fit with LGP’s existing operations and capabilities, immediately providing LGP with additional cultivation and manufacturing capacity and accelerating its planned capacity expansion by up to two yearsAcquisition consistent with LGP’s EU expansion strategy and provides platform to leverage the Company’s early mover advantage in key EU marketsAcquisition represents step change for LGP, positioning Company as a leading global pure play medicinal cannabis producer and owner of one of the largest cannabis production assets in EuropeCompany received firm commitments to raise A$27.2 million by way of Placement to existing institutional and sophisticated investors in connection with the AcquisitionPlacement received significant support from Hancock Prospecting, one of Australia’s largest mining and resources companies, who committed A$15 million under the Placement and will hold over 10% of the Company following Placement settlementPlacement proceeds to be applied to part fund the Acquisition, build out of the Company’s European sales team, and fund capital expenditure works and working capital requirements